FAQs (Rules/Legal)

I have just signed up as an Independent Business Owner (‘IBO’). Am I obligated to doanything?

No. As an IBO, you are an independent contractor, not an employee of Amway. Provided you complywith the Amway IBO Rules of Conduct, there is no obligation for you to build a business.

IBOs are under no obligation to perform any specified time or set amount of hours in this business,to make any orders for retail sales, sponsor IBOs, or to attend any Amway meetings or functions.For further information, refer to rule 4.14.4 of the Rules of Conduct for IBOs.

Can I join up a charity organisation or club as an IBO?No. An Amway Independent Business is only granted to individuals, limited liability companies,trustees, or partnerships. The reason for this is that the sole purpose of the business needs to be torun it as an Amway business, and not for any other reason. Refer to rule 2.9 of the Rules of Conduct for IBOs for more information.

I’m in Australia on a visa. Can I become an IBO?If you are not an Australian citizen, your ability to become an Australian IBO depends heavily on therequirements set out in your visa. You are personally responsible for complying with the terms ofyour Visa. Each application submitted to us is assessed on a case by case basis.

Generally, along with the requirements of being an IBO, any applicant who holds a visa must have acurrent and enforceable entry permit that gives the applicant Permanent Residence Status inAustralia. The entry permit must also have no work restrictions.

You will also need to have an Australian bank account with an Australian resident bank, and youmust appoint a manager (who is an IBO) to manage your business if you move back overseas. This isdone by way of an Amway Management Agreement, to be submitted to Amway.

For more information, refer to rule 3.3.11 in our Rules of Conduct for IBOs. You can also contact theAmway Business Conduct Department on (02) 9854 8100 or 1800 45 46 47 to discuss your options.

The Cohabitation Rule explained.The Cohabitation Rule requires IBO couples to operate one single Independent Business (IB)together.

The rule covers two situations:1. If a married or defacto couple want to join the business, they must only form one IB together.2. If two existing IBOs begin a married or defacto relationship and neither is a Platinum IBO orabove, then one of the IBs will be required to be resigned. The choice of which to resign isdetermined by the company in consultation with you and inconsideration of a number offacts.

If one or both IBOs are at Platinum level or above, then the businesses may, at Amway’s discretion,remain separate. The IBs will then be held in both individuals names and be referred to as Business#1 and #2.

We are an IBO couple and are separating. What can we do?There are several options available.

1. If it is possible, both of you can remain on the same business and continue building it withthe support of your upline;

2. One partner can be removed from the business completely; or

3. One partner can be removed from the business and sign up as an individual IBO under thesame or another LOS upon approval from Amway.

All changes to the business must be agreed upon by both partners, and be submitted in writing toAmway for approval.

If you would like to discuss your options in relation to separation, please contact the AmwayBusiness Conduct Department on (02) 9854 8100 or 1800 45 46 47.

I don’t like my Line of Sponsorship (LOS). Can I change?You can, but the Rules of Conduct place restrictions on when you can resign from one LOS and joinanother. You must resign from the business – by notifying Amway in writing – and becomecompletely inactive for 6 months before rejoining the business again as a new IBO. This means youcannot be directly or indirectly engage in business activity connected with Amway, including retailingproducts, presenting the Amway Sales and Marketing plan, or attending any meetings or functionsrun by Amway or a System. You are only able to purchase product as a retail customer for thisinactivity period.

The 6 month inactivity rule explained.The aim of this rule is to protect the Amway Line of Sponsorship (‘LOS’).If an IBO wants to change LOS, they would need to resign from their business, in writing to Amway,and wait 6 months before they can rejoin under a new LOS. You must be completely inactive. Thismeans you cannot attend any meetings and functions, or retail any of the Amway products.

A change of LOS will not be granted to anyone who has arranged to move to another LOS beforeresigning from their original LOS and waiting 6 months. In these cases, Amway has the right to denythe new application.

Should any of your upline or downline wish to move LOS with you, they will need to resign, in writingto Amway, and become completely inactive from the business for a period of 2 years before signingup with your new LOS.

For further information, refer to rule 4.7 and 4.8 of the Rules of Conduct for IBOs.

What does ‘inactivity’ mean?Inactivity means that a previous IBO has no business activity for the required period. This includesattending meetings held by Amway or associated affiliations, discussing the business opportunitywith a potential sponsor or prospect, or retailing product. You are permitted to purchase product ata retail price for the use of personal consumption only.

I am not getting any support from my upline/my upline is inactive, what should I do?If your direct upline sponsor has become inactive, or is unsupportive, you always have the option ofcontacting the next active upline, up to and including your Platinum. Alternatively, you may also beable to seek assistance from your upline Emerald or Diamond.

If you are not able to resolve an issue within your upline, contact Amway for additional support.

I want my child to inherent my business. What’s the best advice?Generally, when an IB reaches the Platinum level, Amway may allow an extra person/s to be addedas additional applicants for the purpose of transitioning the business over to the next generation.Alternatively, if your children are interested, they can have their own IB within your LOS. This willalso assist with the transition to the next generation, whereby at a certain level it is possible tointegrate a parent’s IB with their child’s IB if certain conditions are met.

It is best to contact Amway directly as each application will need to be assessed on a case by casebasis. We aim to achieve the best possible outcome for both the family and your Line ofSponsorship.

Refer to rule 6.12 in our Rules of Conduct for IBOs for more information.

Can I advertise the business opportunity or any Amway products in public?No. Any form of advertising in an open public arena is not allowed. This includes, but is not limitedto, displaying posters in public places, advertisements on telegraph poles, handing out flyers,advertisements on e-commerce sites such as eBay or Gumtree, letter box drops, spam or massmailings.

This rule is in place to protect the direct selling nature of the Amway business, and to give all IBOs anequal opportunity for success. Amway is a one-on-one business and is based on connecting withpeople and building relationships, rather than broadcasting messages to the public at large.Amway does have a Booths and Events Program which allows IBOs to promote certain products atcertain levels events. See information on this program below.

For more information on advertising the business, refer to rules 3.9.23 and 3.9.24 in our Rules ofConduct for IBOs.

Am I able to create flyers, brochures or pamphlets for my own group?Yes, provided that their only use is for distribution with people within your direct LOS. These areclassed as Business Support Materials (BSMs) and should be submitted to Amway for review prior touse. You may also produce and distribute BSMs to people whom you have an existing relationshipwith that are not yet Amway IBOs.

Keep in mind that such flyers must not contain any inaccurate depictions of the Amway business, thebusiness opportunity or income levels. In addition, all facts and figures should be accurate and up todate, and you cannot use any unauthorised quotes or images. If you wish to use any Amwaytrademarks or images, you must seek permission from Amway first.

Can I sell the products in a retail store?No, you cannot sell any Amway distributed products in a retail location. This includes any retailstores, supermarkets, school fairs, fetes, public stalls, and any other public events. The reason forthis is that products are to be sold only in a one-on-one environment to people that you have a preexisting relationship with. It is against the nature of the Amway business to promote products in anopen environment, such as a shop.

There are exceptions to this retail rule, but this is restricted to IBOs who work in a profession relatingto the product they are promoting. See below for more information on these exceptions.

For more information, refer to rule 3.6.1 in our Rules of Conduct for IBOs.

Can I promote or retail Artistry, Satinique, or Nutriway in a retail location?Yes, but there are strict conditions surrounding this. This exception to the retail rule is only availableto IBOs who work in professions relating to the product they wish to sell. The IBO must havecompleted a Government accredited program in order to promote such products in a retail location.

ARTISTRY/SATINIQUE:A qualified beautician is able to promote ARTISTRY in their salon, and a qualified hair dresser can sellSATINIQUE to clients in their salon.

The only product that can be visible is the working product you are using on the client, and youcannot offer a sale until the client has either asked about the product you are using, or asks for arecommendation.

The sales must take place in a one-on-one environment, and the products or advertisements for theproducts (including posters) must not be openly displayed in the salon.Fuel Factor/NUTRIWAY:

A qualified personal trainer can recommend Fuel Factor products to their clients, and a qualifieddoctor or nutritionist can recommend NUTRIWAY products to their clients.As above, the sales must be done in a one-on-one environment, and the products or advertisementsfor the product (including posters, for example) must not be openly displayed in the gym or theconsultation/waiting rooms.

Refer to rules 3.6.3 (a)-(b) in our Rules of Conduct for IBOs for more information.

You should also ensure that the client you are offering the product to is not already an existing IBO,or a customer of another IBO. If they are an existing IBO, the promotion or sale of the product muststop there. If it is discovered that they are a customer of another IBO, you are to encourage theclient to purchase the product from their existing IBO.

In both instances, you are permitted and encouraged to supply them with the necessary details toorder the products themselves or via their usual seller.

Can I sell XS Energy in a gym, café or bar?Yes, but again there are certain restrictions to this exception. The most important thing toremember is that the XS products or the XS brand cannot be publicly displayed. For example, youcannot have an XS can displayed openly on a shelf, sitting in a fridge with a glass door, or labelled ona menu/menu board.

When listing the availability of the product for purchase on a menu, “various flavoured energydrinks” is a permitted example. Additionally, the contents of the can are to be dispensed into a glassprior to the customer taking possession. You cannot give the can to the customer.

As above, sales must always be in a one-on-one environment. You cannot, for example, place thecans in a vending machine or a self-service fridge for customers to buy.

For more information, refer to rule 3.6.3 (c) in our Rules of Conduct for IBOs.

Booth & Events explained.With express and explicit permission, Amway will at times allow the promotion or sale of selectedproducts at selected events. All IBOs have the opportunity to apply for the authorisation to host abooth within the established guidelines.

The products promoted or sold must also be consistent with the theme of the event. For example,nutrition products may be sold at health shows or sporting events and beauty products may be soldat beauty events.

Applications must be made, in writing, at least 30 days prior to the event.

Events that Amway will not grant permission include stalls at weekend markets, kiosks in retailshopping centres, fetes, fairs, or any event involving schools.

It is important to note that this does not mean Amway products can be sold in retail stores. Penaltieswill apply for not following the IBO Rules of Conduct set out by Amway.

What can I include on my business website?Websites and Social Media profiles are considered BSMs. As noted above, all BSMs should besubmitted to us prior to going ‘live’.

Your opening page can include things such as a picture of you, your name, that you are an IBO, andany hobbies, interests, or market trends that you think might be relevant. Any information beyondthis – such as your contact details, or information about the Amway business opportunity andAmway products – must be password protected.

Behind password protection, you can include information about the Amway business opportunityand the Amway distributed products, any System information you want to include (such as anyupcoming functions or CDs you may recommend – but this must be presented as optional), thebenefits if becoming an IBO, and order forms.

It is important that you don’t directly advertise the business opportunity or any products sales onyour page. All sales must be taken to private messaging.

If you would like more information, or want to submit your website for approval, please contact usvia email at gillian_shaw@amway.com.

You can find more information in section 14 of the Rules of Conduct for IBOs.

What can I include on my Social Media profile?Social media includes social networking sites, microblogs, video/photo sharing sites, podcasts,weblogs, forums, discussion boards, and online encyclopaedias. It is important to remember thatsocial media is an addition to other forms of contact, such as face-to-face. It is not a mechanism topublicly find new prospects, or to openly market and sell products.

You must ensure that your account settings are set to private so only your friends and family can seeyour full profile and any status updates. Information that can be displayed openly to the publicincludes your name (or business name), your profile picture, that you are an Amway IBO, andgeneral information about yourself, such as hobbies and interests. All other information, includingyour contact information, must be set on private.

Status updates about specific topics should only be visible to selected groups in your friends lists. Forexample, any information about Strike-a-Deal campaigns should only be accessible to your existingAmway customers. Often you can create these ‘groups’ within the settings section of the socialmedia platform you are using, and you can choose to share specific updates with these people only.Status updates should be kept as general as possible. You cannot make any status updates thatopenly call for prospects, or make any updates that directly advertise the Amway products or deals.You cannot advertise products for sale, or promote the business opportunity via social media.Rather, we encourage you to talk about your experiences with the products and the Amway businessto spike curiosity in your followers. For example, rather than posting “Artistry is my favourite brandof make-up, contact me if you would like to try some” - instead post something like, “Artistry hasdone wonders for my skin!”

Copyright explained.Copyright is the protection given to a person’s original work. It is the right given to the owner of theoriginal works, to use such work exclusively. Ownership survives until the end of the creator’s lifeplus 70 years. If the work was published after the death of the creator, copyright expires 70 yearsfrom the date of publication. For example, Banjo Paterson died in 1941, and in 2011 his workbecame free to use without the need for permission.

A breach of copyright occurs when a person who is not the creator of the work uses a significant ordistinctive part of the work without the creator’s permission. Only the owner of the work can grantthe right to copy or reproduce the material.

It is important to be mindful of any images, slogans, quotes, or music you may reference in abusiness speech or post on your websites or social media sites. This also includes using any musicthat accompanies a video you may upload. Reproducing these works without the owner’s permissioncould amount to a breach of copyright.

‘Stacking’ rules explained.Depth building is an important component of growing an Amway business. When done properly, andin conjunction with building width, an IBO may be additionally rewarded with monthly depthbonuses. However, it is possible to manipulate this process and result in what is called ‘stacking’.‘Stacking’ is the process of continuously placing new, disconnected prospects underneath a singlesponsor in a single file. This goes beyond ‘depth building’ as there is no width to the LOS and norelationship between sponsor and IBO.

It is important to be aware that in the process of sponsoring there should always be a relationshipbetween the sponsor and the new IBO. The depth and duration of that prior relationship will varyfrom time to time, but it is of fundamental importance that the sponsor and prospect areacquainted. This is to ensure a new IBO gets all the necessary support from their sponsor.

The personal relationship between each Amway IBO and their sponsor is the foundation of thisbusiness and acts as a building block for every LOS. There is no real benefit to bringing togetherdisconnected people in what can amount to stacking, and it is considered a breach of the IBO Rulesof Conduct.

Amway strongly encourages building a balanced business, and strongly discourages stacking as it is amanipulation of the sales and marketing plan. It is essential that IBOs personally know their sponsor.

Another Multi-Level Market company (‘MLM’) keeps approaching my IBOs and damaging Amway’s reputation. What should I do?

Report any incidences to Amway, providing as much information as possible. Try to include thename of the person approaching your downline, the name of the company they are promoting orprospecting for, and any evidence of the incident that you can provide to us.

It is important to be aware of the Rules regarding the promotion of another MLM or networkmarketing business. In part, Rule 3.19 prohibits and IBO from supplying or selling to other IBOs anyproducts or services which are supplied through another MLM.

The reason for this rule is to ensure that Amway’s confidential information, that being Line ofSponsorship details, remains confidential and is not being used for a purpose other than the Amwaybusiness. IBOs cannot use such personal information for a purpose beyond building and runningtheir Amway business and assisting their groups to do the same.

If the person contacting you about another business is an IBO, whether in your LOS or another LOS,it is important to notify Amway. The company can take steps in line with the Rules of Conduct toensure that the matter is resolved and the activity is stopped as soon as possible with minimaldisruption to the LOS involved.

If you do come across individuals who are trying to promote another MLM to your group, werecommend that you encourage and support your downline and their business to reduce thechances of them moving to another MLM company. It is important to highlight the benefits ofAmway, what makes the company stand out and share your own positive experience with yourgroup.

Am I obligated to participate in any System activity?No. Systems are completely optional to join and part-take in. This includes attending any Systemfunctions, and buying any Business Support Materials such as CDs, DVDs, books etc.